ASSESSING THE IMPACT OF GREEN FINANCE AND THE DIGITAL ECONOMY ON ENERGY TRANSITION: A MULTI-QUANTILE ANALYSIS OF E7 COUNTRIES’ PROGRESS TOWARDS SDGS 7, 9, 13 AND COP28

Abstract

The global transition to sustainable energy systems is crucial for achieving sustainable development goals and addressing the challenges of climate change, while aligning with the COP28 goals. In this context, the roles of Green Finance (GRF) and the Digital Economy (DTE) have gained increasing importance, especially in emerging seven economies (E7) countries. However, the synergistic impact of these two factors on Energy Transition (ENT) has been underexplored in the literature. This study investigates the combined effects of GRF and DTE on ENT in the E7 nations, with the objective of identifying pathways to accelerate sustainable energy transitions and meet COP28 climate objectives. Using annual data (2000-2023) and applying the Moment Quantile Regression (MMQR) method, we analyze the relationship between GRF, DTE, and ENT across different quantiles. Our findings reveal that GRF significantly enhances the energy transition process, while digital technologies play a vital role in increasing the efficiency and reach of energy systems. Notably, we observe a synergistic effect between GRF and DTE, where GRF moderates the impact of DTE on ENT, particularly in countries with higher levels of financial and technological development. Building on these findings, we propose critical policy interventions to accelerate the energy transition, driving impactful change toward a sustainable and resilient energy future.